Bankless Inside Gary Gensler’s SEC: A Conversation with Former Crypto Policy Advisor Corey Frayer
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Dec 8, 2025 
Corey Frayer, former senior crypto policy advisor to SEC Chair Gary Gensler, dives into the inner workings of the SEC during a pivotal time for crypto regulation. He discusses the agency's shifting focus from tokens to centralized platforms like Coinbase and Kraken, and defends the SEC's role in investor protection. With insights on DeFi, the Howey test, and the challenges of regulatory clarity, Corey emphasizes the need for structured oversight and critiques industry perceptions of a regulatory attack. His balanced stance offers a deep understanding of crypto policy dynamics.
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Gensler Versus SBF Over Red Lines
- Corey recounts a public confrontation between Gary Gensler and Sam Bankman-Fried over structural red lines.
- That clash highlighted SEC unwillingness to accept integrated exchange-bank models.
SEC Worried About FTX Structure Early
- Corey says SEC had concerns about FTX's structure long before the fraud surfaced.
- The agency saw vertically integrated models as classic failing business models ahead of collapse.
Economics, Not Tech, Drives Regulation
- Treating economically identical activities differently would undermine the entire securities regime.
- SEC saw large crypto platforms as potential threats to the integrity of broader markets if left unregulated.